Apple primed to pass Microsoft in revenue this quarter

16 years ago

“Whether it deserves it or not, Apple has held onto its lead over Microsoft in terms of market capitalization since it first surpassed it back in May,” Andy M. Zaky writes for Fortune. “While it may be bigger in value thanks to a meteoric stock surge, Apple’s revenue and earnings still fall short compared to Microsoft. But that’s all about to change.”

“Apple will report second quarter earnings on Tuesday, and Microsoft will follow on Thursday,” Zaky writes. “Though Apple still has a ways to go to compete with Microsoft in terms of net income due to Microsoft’s untouchable operating margin, many will be surprised to discover that Apple’s revenues are close to surpassing Microsoft’s. If it doesn’t happen this week, it will almost certainly come in the next quarterly announcement.”

Zaky writes, “Financial Alchemist’s Turley Muller, who is currently the most accurate analyst on Apple… believes that Apple will report about $3.1 billion in net income on ($3.35 in EPS) on $15.15 billion in revenue… Microsoft, on the other hand, is expected to earn $4.1 billion in net income ($0.46 in EPS) on $15.26 billion in revenue when it releases results on Thursday – just a hair above Muller’s revenue estimates for Apple. And while Microsoft regularly reports upside surprises itself, the gap between consensus estimates and Microsoft’s actual results is nowhere near as wide as it is with Apple’s results.”